How does a monopsony benefit an employer?
a. Having no competition for sales increases revenues.
b. The employer works together with other firms to set prices.
c. The employer can increase profits by keeping wages low.
d. Workers are paid above their marginal revenue product.
c. The employer can increase profits by keeping wages low.
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In a natural monopoly, the long-run average cost curve declines and therefore average cost is lower when there is only one seller
a. True b. False Indicate whether the statement is true or false
At present, what is the approximate natural rate of unemployment in the United States?
a. 4.5 percent b. 5.5 percent c. 7 percent d. 8.5 percent e. 2.5 percent
Suppose that an ad valorem tax of 10% is imposed on producers of butter. The bread market supply is Qs = 10 + P and the bread market demand is Qd = 220-P. What is the producers' tax burden?
A) Producers' tax burden is $8. B) Producers' tax burden is $10 C) Producers' tax burden is $4. D) Producers' tax burden is $5.
Refer to the information provided in Table 33.6 below to answer the question(s) that follow.
Table 33.6
Refer to Table 33.6. Trade will flow in both directions between countries only if the price of the euro is between
A. $.60 and $.75. B. $.40 and $.50. C. $1.00 and $2.25. D. $.44 and $1.00.